Dayforce Inc (DAY) AI Stock Analysis

• Market Cap: $11.03B
• Dividend Yield: N/A
• Average Volume (3M): 2.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: 11.73%
• EPS Growth: -376.77%
• Country: US
• Employees: 9,600
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.37
• Shares Outstanding: 160,034,960
• 10 Day Avg. Volume: 3,802,072
• 30 Day Avg. Volume: 2,755,435
• PEG Ratio: -9.24
• Price to Book (P/B): 4.50
• Price to Sales (P/S): 6.51
• P/FCF Ratio: 66.84
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 6.22
• Enterprise Value/Gross Profit: 11.76
• Enterprise Value/Ebitda: 81.69
• 1Y Price Target: $70.00
• Price Target Upside: 0.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 2.74
• Revenue Forecast (FY): $2.17B

• Rating: 64 Neutral
• Price Target: $74.00 ▲(5.93% Upside)

The score is primarily driven by moderate financial performance: strong gross margin and revenue trend are offset by ongoing losses and declining free cash flow. Technicals are neutral-to-slightly positive, while valuation is penalized by negative earnings (negative P/E) and no dividend. Corporate events add support due to the advancing going-private transaction, partially offset by related legal/disclosure risks.

Positive Factors

Strong Gross Margin

A sustained gross margin near 53% indicates durable unit economics for Dayforce’s cloud HCM platform. High gross margins support reinvestment in product R&D and sales, enabling scalable growth and resilience to pricing pressure across the enterprise customer base.

Recurring Subscription Model

A subscription-based, recurring revenue model provides predictable cash flows and high customer lifetime value, supporting steady revenue visibility. This structure aids long-term planning, cross-sell of modules, and retention-driven margin expansion versus transactional sales.

Conservative Leverage

Low leverage (D/E ~0.22) gives Dayforce financial flexibility to fund product investment or absorb shocks without heavy interest burden. A conservative capital structure reduces refinancing risk and supports strategic options like targeted M&A or increased R&D spend.

Negative Factors

Negative Profitability

Ongoing negative net and EBIT margins indicate Dayforce has not yet converted revenue scale into consistent operating profits. Persistent losses constrain internal funding for growth, depress returns on invested capital, and require sustained margin improvement to reach self-sustaining profitability.

Declining Free Cash Flow

A 26% TTM drop in free cash flow weakens the firm’s ability to fund investments or repay obligations from operations. Even with positive operating cash flow, shrinking FCF limits optionality, increases reliance on external capital, and raises scrutiny on cash conversion efficiency.

Going-private Execution & Disclosure Risk

The pending Thoma Bravo/Dawn Bidco going-private deal is a major structural change that can alter capital strategy and governance. Disclosure complaints and required additional disclosures create execution risk, potential delays, incremental costs, and uncertainty around post-close integration plans.

Dayforce Inc Business Overview & Revenue Model

Company Description

Dayforce Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud HR and payroll solution for the small business market. The company also provides Bureau solutions for payroll and payroll-related services. It sells its solutions through direct sales force and third-party channels. The company was formerly known as Ceridian HCM Holding Inc. and changed its name to Dayforce Inc. in February 2024. Dayforce Inc. was incorporated in 2013 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

Dayforce generates revenue primarily through a subscription-based model, offering its HCM software to businesses on a recurring basis. This includes annual or monthly fees for access to its cloud-based platform, which covers various HR functions. Key revenue streams include fees from payroll processing, workforce management solutions, and additional services such as analytics and compliance management. The company also benefits from strategic partnerships with other technology firms, enhancing its service offerings and expanding its market reach, which contributes to its overall earnings.

Dayforce Inc Financial Statement Overview

Summary

Solid revenue growth trend and improved gross margin (TTM gross margin 52.9%) support the score, but negative profitability (negative net profit and EBIT margins) and a 26% TTM decline in free cash flow are meaningful concerns despite a stable balance sheet with moderate leverage (debt-to-equity 0.22).

Income Statement

Dayforce Inc has shown consistent revenue growth, with a TTM revenue growth rate of 2.25% and a strong historical trend. However, profitability metrics such as net profit margin and EBIT margin are negative, indicating challenges in achieving operational efficiency. Gross profit margin has improved to 52.9% in the TTM, reflecting better cost management.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.22 in the TTM, indicating a conservative leverage approach. However, the return on equity is negative, reflecting ongoing profitability challenges. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

Operating cash flow is positive, but the free cash flow has declined by 26% in the TTM, indicating potential cash management issues. The operating cash flow to net income ratio is healthy, suggesting good cash generation relative to earnings, but the free cash flow to net income ratio indicates room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.89B	1.76B	1.51B	1.25B	1.02B	842.50M
Gross Profit	1.00B	812.10M	646.50M	473.20M	382.30M	341.30M
EBITDA	144.20M	288.00M	264.60M	54.70M	23.10M	56.90M
Net Income	-149.80M	18.10M	54.80M	-73.40M	-75.40M	-4.00M
Balance Sheet
Total Assets	8.68B	9.12B	9.01B	8.46B	7.17B	6.70B
Cash, Cash Equivalents and Short-Term Investments	627.60M	579.70M	570.30M	431.90M	367.50M	188.20M
Total Debt	1.23B	1.23B	1.24B	1.25B	1.18B	711.90M
Total Liabilities	5.98B	6.57B	6.61B	6.35B	4.94B	4.60B
Stockholders Equity	2.69B	2.55B	2.40B	2.11B	2.23B	2.10B
Cash Flow
Free Cash Flow	165.80M	171.50M	105.10M	38.10M	-14.90M	-90.00M
Operating Cash Flow	274.50M	281.10M	219.50M	132.60M	48.80M	-30.20M
Investing Cash Flow	-306.40M	-471.90M	-202.80M	-342.50M	-711.10M	38.80M
Financing Cash Flow	404.50M	59.60M	242.00M	764.60M	491.90M	565.30M

Dayforce Inc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAY, the sentiment is Positive. The current price of 69.86 is above the 20-day moving average (MA) of 69.32, above the 50-day MA of 69.21, and above the 200-day MA of 63.99, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 63.92 is Neutral, neither overbought nor oversold. The STOCH value of 51.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAY.

Dayforce Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYC	76 Outperform	$7.50B	16.57	28.56%	0.94%	9.72%	-2.69%
PCTY	71 Outperform	$7.37B	31.86	20.42%	―	13.30%	2.80%
PEGA	67 Neutral	$7.39B	29.52	51.96%	0.16%	17.00%	120.21%
SRAD	67 Neutral	$5.67B	51.19	9.79%	―	18.99%	66.43%
ESTC	65 Neutral	$6.90B	―	-12.84%	―	16.98%	-265.85%
DAY	64 Neutral	$11.03B	―	-5.71%	―	11.73%	-376.77%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Dayforce Inc Corporate Events

Dayforce receives approvals to finalize going-private merger

Dayforce, Inc. announced that it has received all required regulatory approvals for its previously disclosed merger with Dayforce Bidco, LLC, under which a wholly owned subsidiary of Dayforce Bidco will merge with and into Dayforce, leaving Dayforce as a wholly owned subsidiary of the parent. The company said it expects the transaction to close within the next five business days, subject to the satisfaction or waiver of remaining closing conditions, a step that would transition Dayforce to private ownership and potentially alter its capital structure and strategic flexibility for stakeholders.

The most recent analyst rating on (DAY) stock is a Hold with a $76.00 price target. To see the full list of analyst forecasts on Dayforce Inc stock, see the DAY Stock Forecast page.

Dayforce Inc Stockholders Approve Acquisition by Thoma Bravo

On November 12, 2025, Dayforce Inc. held a special meeting where stockholders approved the company’s acquisition by Thoma Bravo, a major software-focused investor. This approval marks a significant milestone, allowing Dayforce to accelerate its business and enhance customer impact. The transaction, expected to close in late 2025 or early 2026, will see Dayforce stockholders receive $70 per share in cash. The acquisition is anticipated to strengthen Dayforce’s market position and drive further innovation in the HCM sector.

The most recent analyst rating on (DAY) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Dayforce Inc stock, see the DAY Stock Forecast page.

Dayforce Inc Announces Merger with Dawn Bidco

Dayforce, Inc. announced a merger agreement with Dawn Bidco, LLC, where Dayforce will become a wholly owned subsidiary of Dawn Bidco. The company has received demand letters and complaints from stockholders alleging disclosure deficiencies in the merger proxy statement. To avoid delays and costs, Dayforce is voluntarily providing additional disclosures while denying any wrongdoing.

The most recent analyst rating on (DAY) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Dayforce Inc stock, see the DAY Stock Forecast page.